A recent report by the National Federation of Independent Businesses (NFIB) found that 36% (seasonally adjusted) of small business owners reported having job openings they could not fill in June 2025.

The ongoing labor shortage continues to disrupt business operations and prevent growth. However, despite the challenging hiring environment, small businesses can adjust their attraction strategies to remain competitive and win over talent.

According to the report, 58% of small business owners were hiring or trying to hire, but 50% of those reported few or no qualified applicants.

Tips for Navigating Hiring Challenges
Consider the following tips for navigating hiring challenges as a small business:

  • Improve job descriptions. A well-crafted job description can make a significant difference in attracting candidates. Be specific about the skills and responsibilities required, and use clear, engaging language. Highlight what makes your business unique, such as your company culture, mission, and growth opportunities, to help applicants envision themselves as part of your team.
  • Offer competitive benefits. Compensation is always one of the most critical factors in employment decisions. Unfortunately, many small businesses have limited budgets to compete against larger employers. If budget constraints limit salary increases, consider offering valuable nonmonetary benefits like flexible scheduling, employee discounts or wellness programs to boost appeal.
  • Invest in learning and development. Hiring candidates with potential and providing on-the-job training can be a smart strategy when qualified applicants are scarce. Develop internal training programs or collaborate with local colleges and trade schools to create internships or apprenticeships. This can build a skilled workforce, foster loyalty and promote long-term growth.
  • Focus on retention. Retaining employees is just as important as hiring them. Regularly check in with staff to understand their needs and concerns. Recognize achievements, offer career development opportunities and create a supportive work environment to keep morale high and turnover low.
  • Leverage local networks. Tap into your community to find potential hires. Attend job fairs, partner with local workforce development agencies and engage with community organizations. These connections can help you reach candidates who are already invested in your area and may be more likely to stay long-term.
  • Use social media and niche job boards. Promote job openings on platforms like LinkedIn, Indeed and industry-specific job boards to reach target audiences. Share employee testimonials, behind-the-scenes content and company updates to represent your brand and attract candidates who align with your values and vision.

Hiring talent continues to be a challenge for many small businesses, but there are practical steps that can make a real difference.

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